REALIGNMENT
Reserve Bank keeps a keen eye on the rand as forces accelerate
Governor Lesetja Kganyago says it's only a matter of time before the supply constraints and rising inflation catch up with emerging markets
SA will need to watch for the "realignment" of exchange rates that can be expected as the Federal Reserve starts to tighten US monetary policy, the Reserve Bank has warned. It signalled that inflation may rise faster than expected, with global factors driving the rand down and fuel and food prices up.
Speaking in the final session of a centenary conference hosted jointly by the Bank and the Bank for International Settlements (BIS), governor Lesetja Kganyago and the GM of the Basel-based BIS, Agustin Carstens, warned that it would be difficult to predict how long the supply side constraints and bottlenecks that have driven up global prices would last, though they are expected to abate as the pandemic subsides...
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